Morning guys,
Gold is testing our patient, stuck in right arm's area and flirting around. Despite this, H&S is still valid and remains valid until price stands above the right arm's bottom, i.e. 1920-1925 lows. Today my price markings 20$ above yours, because I'm using Gold CME Futures, but the shape of the chart is the same.
Here we have few tactical moments that do not impact on overall idea, but might be important for those who are still thinking about long entry. Just to remind you - bears could start action only if price drops under the arms. In this case our scenario changes to opposite and we start betting against H&S pattern:
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As we already has said previously - all preparation are done, gold has tested predefined level last week and some longs are taken probably already. Still, on 4H chart we have the gap that has not been closed yet totally. This is potentially bearish sign, in terms that gold could try to close it before upward reversal and potentially might be interesting, if you're still planning the long entry...
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Another signs we have on 1H chart. First is - few bearish grabbers. One of them also suggests drop under the "Reversal bar" lows. Second - downside XOP target that has not been reached as well. It means that we could get another range for potential long entry of 1946-1963 (in spot quotes it is around 1926-1943).
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Of course it absolutely makes no impact of major scenario, but this moments could help you to make decision, if you would like to take the long position and reduce potential risk of the trade.